Nomad
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Post by Nomad on Mar 15, 2018 22:24:21 GMT
As part of my diversification plan, I've been looking at several fund IPOs which are coming up shortly. My broker's website has all the info, prospectus, etc - www.iii.co.uk/ipos - but I'm struggling to find any sources of independent analysis or comment on these IPOs. Can anyone point me towards such sources, or maybe a forum where people with better knowledge than me discuss such things? |
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bigfoot12
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Post by bigfoot12 on Mar 16, 2018 7:59:24 GMT
I am not a fan of IPO's (especially as a retail buyer); if the IPO is a success you will be scaled back, if it isn't successful you will get everything you want. The last one I bought into I seemed to be scaled back more than the institutions - I got less than a 1/3 of what I asked for. Fund IPO's seem to be a particularly poor option. Unless the fund will own something that you can't easily buy elsewhere I wouldn't bother. You will probably be buying at a premium to NAV which is normally a poor idea; at the moment it is a terrible idea as the discount to NAV, on most closed funds, is towards the higher levels last seen during the worst times of the financial crisis (see this post). However to answer you question, I guess you need to research the fund manager (the individual), the fund managing group (the company) to see if they have a track record or some skill or technology that might help them outperform. And then research the asset class that the fund will be specialising in. |
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macq
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Post by macq on Mar 16, 2018 12:25:32 GMT
would agree with the above on checking the manager/sector etc but always think rightly or wrongly with funds it pays to let the price settle after they start trading(unless there is some sort of bonus on the IPO i.e discount or extra shares etc) as there are probably funds already in that market which you can go back a few years and check the performance and may prefer.Individual share IPO could be different as you may want to get in on the ground floor.
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Post by GSV3MIaC on Mar 18, 2018 15:33:32 GMT
+1 to that .. a few IPOs that I looked at have taken off quite well in the first few weeks, but many languish, or head backwards, rapidly eroding the 'extra units special offer' for early adopters. Call me old fashioned, but I like to see a bit of a track record (yes, I know "past performance is not a good guide" etc. etc. but it's probably better than no guide). And I always have this sneaking feeling that if XYZ-co is launching a 'global left handed Swedish companies fund', they are quite likely jumping on a bandwagon, or chasing some trend, which has got a good head start .. so they may wind up paying a premium (sorry .. you will be paying a premium) for late arrival. I'm old enough to remember the tech bubble ..
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